'Builders and developers cannot dictate policies'

'Builders and developers cannot dictate policies'

The Maharashtra government's decision to grant a floor space index of 3 for 16,302 old and dilapidated buildings in Mumbai and to redevelop sector five of the Dharavi slum is expected to give a much-needed boost to the realty sector.

At the same time, the government has sent a clear signal that builders and developers cannot dictate policies.

In an interview with Sanjay Jog, Maharashtra Minister of State for Housing, Sachin Ahir, explains the intent to bring in transparency in the realty sector and also make policies to increase housing stock to rationalise prices.

'Builders and developers cannot dictate policies'

The redevelopment of such old and dilapidated buildings currently situated even in the coastal zone regulations would also be possible, especially in the wake of new CRZ notification, 2011 issued in January.

I must tell you according to this notification, redevelopment of these old and dilapidated buildings, which are private properties, would come under the purview of Right to Information Act.

Currently, properties of these buildings lie with the landlord. More than 70 per cent of the tenants of these buildings would have to give their consent for redevelopment and only after that, no-objection certificate would be granted by the Mumbai Repair and Reconstruction Board.

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Image: Redevelopment of old buildings will come under the RIA.Photographs: Reuters

'Builders and developers cannot dictate policies'

The government has cancelled the earlier bidding process carried for redevelopment of the Dharavi slum situated in north-east Mumbai.

In a serious bid to bring in transparency and sanity in the entire redevelopment, the government has taken a decision to initially redevelop sector five of Dharavi, which is spread over 19 hectares and involves rehabilitation of over 9,000 families.

The redevelopment would be done by the Maharashtra Housing and Area Development Authority through appointment of contracts.

The rehabilitation of existing families would be done on the vacant land under MHADA's possession by using four FSI and subsequently, MHADA would construct houses for low, medium and higher income categories on the land vacated after rehabilitation of existing slum-dwellers.

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Image: Government will initially redevelop sector five of Dharavi.Photographs: Reuters

'Builders and developers cannot dictate policies'

The state government would soon come out with a new decision to amend Model Regional Town Planning Act, so those residing in suburbs would not be deprived.

This would lead to increase in FSI to one-and-a-half from the present level of one.

This would pave way for redevelopment of old and dilapidated buildings in the suburbs.

Do you expect these slew of decisions will give a much-needed boost to the realty sector?

Certainly. The FSI of 3 for redevelopment of old and dilapidated buildings, redevelopment of sector five of Dharavi and restart of 400 redevelopment projects would lead to availability of more and more houses and this would definitely lead to a price correction in the Mumbai's realty sector within six months.